Positive impactSector
Mutual fund direct plans to become default on AMC apps from November 1; what investors need to know
Mint 1 hr ago·28 Oct 2026, 6:01 pm
The Securities and Exchange Board of India (SEBI) has mandated that asset management companies (AMCs) must make direct mutual fund plans the default option on their mobile apps starting November 1. This change aims to simplify the investment process for retail investors by reducing the number of steps required to purchase a scheme directly from the fund house.
This move is significant because direct plans generally have lower expense ratios compared to regular plans, where an intermediary like a broker earns a commission. By making direct plans the default, SEBI intends to help investors save on ongoing charges and maximize their returns over the long term. Investors will still have the option to choose regular plans, but they will now be required to actively opt-in for them.
Going forward, investors should review their existing investments to ensure they are on the most cost-effective plan. It is also important to monitor the new interface on AMC apps to understand how this change impacts your portfolio management and transaction process.
Excerpt from Mint
SEBI will make direct mutual fund plans the default option on asset management companies’ digital platforms from November 1. Investors choosing regular plans must be informed about their higher expense ratios, chairman Tuhin Kanta Pandey said. SEBI chairman Tuhin Kanta Pandey has announced that direct mutual fund…Read the original at Mint
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